Paddle has raised 拢162 million in a Series D equity and debt financing round at a valuation of $1.4bn, making it the UK鈥檚 latest unicorn.聽
The London company, a provider of payments infrastructure for SaaS companies, was backed by global heavyweight investor KKR, with participation from existing investors FTV Capital, 83North, Notion Capital, Kindred Capital and debt financing from Silicon Valley Bank.
It takes total investment into the business to date to $293m.聽
Paddle鈥檚 payments infrastructure is already used by over 3,000 software companies in more than 200 markets worldwide. It will use the investment for further international expansion in the rapidly growing SaaS sector, which allows companies to compete and sell their products in any market in the world.
Its platform allows them to manage payments and operations across multiple geographies and navigate an increasingly complex web of local and international tax and data regulations. It does this by integrating checkout, payment, subscription management, invoicing, international taxes and financial compliance processes, acting as a 鈥榤erchant of record鈥� for its customers.聽
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It says this enables sellers to activate new business models and enter new markets faster, more easily and with fewer operational and compliance issues.聽
鈥淭he opportunity in software is enormous, with tens of thousands of incredibly innovative businesses bringing great products to market every year,鈥� said CEO and co-founder Christian Owens (pictured in main image, on right, with fellow co-founder and chief strategy officer Harrison Rose).聽
鈥淯nfortunately, many SaaS companies still find their growth hindered by the operational challenges that arise when scaling; from handling subscriptions management or tax compliance to localising payment options in every market.聽
鈥淧addle was created to remove these invisible barriers so that SaaS companies can just focus on building and selling software.鈥�
Paddle has more than doubled its revenue growth since November 2020, contributing to an impressive average annual revenue growth of over 175% over the last four years.聽
It has also scaled its team from 140 to 275 across offices in London and New York, with more hires expected to match its acceleration as a business.聽
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Owens added: 鈥�2021 was a fantastic year for us, but we are only just getting started. We have big plans for 2022 and beyond and we鈥檙e delighted to have the backing of so many fantastic investors who all share our vision.鈥澛�
Patrick Devine, director at KKR, added: 鈥淧addle is solving a significant pain point for thousands of SaaS companies by reducing the friction and costs associated with managing payments infrastructure and tax compliance.聽
鈥淏y simplifying the payments stack, Paddle enables faster, more sustainable growth for SaaS businesses. Christian and the team have done a phenomenal job building a category-defining business in this space, and we are excited to be supporting them as they embark on the next phase of growth.鈥�